Today, Netflix is reporting its Quarter 4 earnings results, showing an increase in both revenue and subscription numbers. 2019 was an important year for the streaming giant, as new competitors entered the marketing, including Disney+ and Apple TV+.
Netflix has reported that their revenue has grown by 31% year over year, with the total 2019 revenue coming in at $20 billion.
In November, we reported that as Disney+ exceeded 24 million subscribers in the US, analysts estimated a one million subscriber loss for Netflix. While that sounds like a major hit to Netflix’s subscriber count, analysts noted that the numbers “appeared manageable.” While Netflix shared their numbers today, we’ll have to wait until February 4 to get an update from Disney during their Q1 earnings call.
Global subscriptions have risen to over 167 million, up 20% year over year. By adding 8.8 million subscribers, Netflix surpassed their forecast of 7.6 million additions. “Streaming entertainment is a global phenomenon and we’re working hard to build on our early progress,” the company wrote in a letter to shareholders.
Monthly subscriptions are the only option when it comes to Netflix, so numbers can fluctuate wildly from one quarter to the next, based on whether subscribers will stick with the service they know or drop their subscription to try a new service. However, there have been reports of Netflix testing out a new annual subscription option that would offer subscribers a discount and bring more consistency to subscriber numbers.
When it comes to staying competitive, Netflix is banking on its original content continuing to draw in new subscribers and maintain current subscribers. In a chart (below) shared in the letter, Netflix shows Google searches for Netflix original content (The Witcher) surpassing those for Disney+ original content (The Mandalorian), Apple TV+ original content (The Morning Show), and Amazon Prime original content (Jack Ryan).
“Many media companies and tech giants are launching streaming services, reinforcing the major trend of the transition from linear to streaming entertainment. This is happening all over the world and is still in its early stages, leaving ample room for many services to grow as linear TV wanes,” the shareholder letter says. Netflix is counting on its history, satisfied subscribers, and new content to continue being successful among the competition.
Netflix noted that The Witcher is on track to be the biggest season one TV series ever on the platform. The Crown continues to be a hit for the streaming service, with over 21 million households watching season 3 within its first few weeks. Netflix reportedly spent $15 billion on original content in 2019 and is likely to exceed that in 2020.
Did you know we now have a FREE app for iOS, Android, and Amazon Fire? Click HERE to download our app.
Please follow us on Facebook and Twitter for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.